This paper shows that acquirers have a strong and consistent preference for spatially close target companies. We measure proximity preference against benchmark portfolios of hypothetical targets for each deal, using data from US domestic mergers and acquisitions transactions. With increasing...

This paper examines shareholder wealth effects of cross-border acquisitions. In a sample 155 large acquisitions by German corporations from 19852006 international transactions total do not lead to significant announcement returns. Geography, however, makes a difference: Shareholders of acquiring...